UK Politicians Urge Review of Netflix's $83 Billion Warner Bros. Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
0mins
Source: seekingalpha
- Regulatory Review Call: Several UK politicians and former policymakers are urging a full review of Netflix's $83 billion acquisition of Warner Bros. Discovery, expressing concerns that this deal will solidify Netflix's dominance in the TV streaming market, potentially leading to higher prices for consumers.
- Market Impact Warning: In a letter to Sarah Cardell, CEO of the UK's Competition and Markets Authority, these officials warned that the merger could create a 'chilling effect' on the streaming market, as Netflix would gain unprecedented pricing power at a time when British consumers are already struggling with affordability.
- Netflix's Response: Netflix stated to the Financial Times that it is in contact with regulatory bodies in all relevant jurisdictions and is highly confident in the regulatory process, asserting that the deal is beneficial for consumers, innovation, workers, creators, and growth.
- Industry Implications: The regulatory scrutiny surrounding this acquisition not only impacts Netflix's market strategy but could also have far-reaching effects on the competitive landscape of the entire streaming industry, particularly given the current sensitivity of consumers to price increases.
Analyst Views on WBD
Wall Street analysts forecast WBD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WBD is 24.98 USD with a low forecast of 14.75 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
5 Buy
9 Hold
0 Sell
Moderate Buy
Current: 28.240
Low
14.75
Averages
24.98
High
30.00
Current: 28.240
Low
14.75
Averages
24.98
High
30.00
About WBD
Warner Bros. Discovery, Inc. is a global media and entertainment company that creates and distributes a portfolio of branded content across television, film, streaming and gaming. The Company's segments include Streaming, Studios and Global Linear Networks. The streaming segment primarily consists of its premium pay-television and streaming services. The studios segment primarily consists of the production and release of feature films for initial exhibition in theaters, production and initial licensing of television programs to third parties and its networks/streaming services, distribution of its films and television programs to various third party and internal television and streaming services, distribution through the home entertainment market (physical and digital), related consumer products and themed experience licensing, and interactive gaming. The Global Linear Networks segment primarily consists of its domestic and international television networks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
